Trade activity between the Republic and non-EU countries weakened significantly in September, according to new data from the Central Statistics Office.
On a seasonally-adjusted basis, the value of goods exported by Irish firms to locations outside the EU fell by 7 per cent to €2.4 billion between August and September.
This is the lowest value recorded for more than two years and, despite volatile monthly factors, indicates a sharp slowdown in trade activity.
Imports from non-EU countries fell by 16 per cent to €1.4 billion over the month. This is the lowest value recorded since the same month a year ago.
Mr Alan McQuaid, chief economist with Bloxham Stockbrokers said the trade performance was "disappointing", particularly on the export side. Exports have been a key driver of the Republic's economic growth in recent years.
"It's a worrying sign," he said, noting that if severe cuts in public spending were, as expected, announced in tomorrow's budgetary Estimates, domestic momentum could be set to follow international demand on a downward trend.
Taking the period between January and September this year as a whole, unadjusted numbers show that non-EU exports declined by 3 per cent to €25.5 billion when compared to the same months of 2001.
The largest fall in export trade came in electrical machinery, where the value of goods sold outside the EU was cut by one-third to €2.4 billion. Exports of organic chemicals declined by 5 per cent to €7.7 billion over the nine months, but this was balanced by a 63 per cent rise in the export value of medical and pharmaceutical products, which grew to €2.8 billion.
Imports from non-EU countries fell by 7 per cent over the period, reaching €14.4 billion.
The most significant contraction came in telecommunications and sound equipment, where imports fell by 41 per cent to €719 million. Imports of computers declined by 18 per cent to €3.2 billion, while imports of electrical machinery fell by almost one-fifth to €2 billion.
Large rises in import values were recorded in transport equipment (other than road vehicles), where imports rose by 134 per cent to €1.3 billion, and organic chemicals, where import trade grew by 82 per cent to €1.1 billion.
Mr McQuaid said the rise in chemicals imports should be positive for future export growth in the same area as imported components were used in the manufacture of goods for sale abroad.
